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Introduction
Elements for Successful Business
Overview
Why Buyer-Seller Linkages are Needed
Identifying Market Opportunities
Selecting Suitable Enterprises
Selecting Suitable Locations
Selecting Linkage Partners
Specifying the Partners' Roles
Forming and Managing Producer Groups
Designing Buyer-Seller Contracts
Designing Product Pricing Systems
Performance Monitoring and Recording
Non-Quantifiable Outcomes
Alternative Linkage Models
Providing Services to Smallholders
Agricultural and Environmental Practices
Quality Assurance & Human Health and Safety

Current and Future Trends

 


EXAMPLE OF A SUITABLE LOCATION CHOICE


Smallholders in a remote village in Tanzania, along a rough road which is almost impassable in the rainy season, were also encouraged to grow chillies. Here there were few alternative income-earning opportunities, so most households had under-utilized land and labour. However, it was difficult for the company to service them and collect their crop, particularly in the early stages of the partnership when the amount of produce was small. The company offered smallholders a higher price for dried chillies delivered to an urban collection point. They were able to dry the chillies at home and deliver them to the market when the rains allowed.

Analysis:
Access was bad and co-ordination difficult, but the under-utilized land and labour and lack of alternative uses ensured smallholders remained interested. The exporter's adaptation of price and collection procedures tipped the balance sufficiently and the enterprise succeeded.

Related Information: Unsuitable location choice

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Natural Resources Institute 2003